MSI is considering eliminating a product from its Toddle Town Tours collection. This collection is aimed at children one to three years of age and includes tours of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection. The Post Office Polka, have tagged the others. Several other CDs are planned for this collection, but none is ready for production Mais information related to the Toddle Town Tours collection follows: Segmented Income Statement for MSI'S Toddle Town Tours Product Lines Post Pet Store Grocery Office Parade Gwy Polka Total Sales revenu 5115,000 $110,000 $32,000 3257.000 Variable costs 49,000 45 000 28.000 122,000 Contribution margin $ 66,000 $ 65,000 $14.000 $135.000 Less: Direct Fixed costs 7.400 7.000 3.000 17400 Segment margin 558,600 $ 58,000 $1,000 $117.000 Less Common fed costs 5.750 5.500 1,600 12.850 Net operating income (0) $ 52,850 3527500 (000 $104,790 Allocated based on total sales dollar MSI has determined that almination of the Post Office Polka (POP) program would not impact sales of the other two item. The remaining fired overhead current alocated to the POP product would be redistributed to the remaining two products Required: 1. Calculate the incremental effect on profit if the POP product in eliminated manag dl E STV 2. Should MSI drop the POP product? Yes No 3-2. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $1.200 of the common foed costs could be avoided if the POP product line were eliminated Emon PIO 3.1. Should Mst drop the POP product? Yes No 30 IV